Managing and controlling access to sensitive resources is critical for any organization. Privileged Identity Management (PIM) is a service in Microsoft Entra that helps enforce governance over privileged accounts, ensuring that only authorized users can access high-risk assets when necessary.
PIM extends across Microsoft Entra ID, Azure, and other Microsoft services like Microsoft 365 and Intune, offering a structured way to regulate administrative roles. However, there are overlaps between PIM, Privileged Access Management (PAM) and Identity and Access Management (IAM).
In this blog, we’ll break down the differences between these three security models and explore best practices for managing privileged access effectively.
Why is PIM Important for Organizations?
Many organizations lack strict governance over superuser accounts, such as those assigned to database administrators, CIOs, and CEOs. These accounts often remain unchecked, and their owners may have little to no formal training in securing them against misuse or compromise.
This gap creates a significant security risk. Threat actors target privileged credentials to gain unauthorized access, steal enterprise data, or infiltrate networks before moving across laterally. This type of stealthy, long-term exploitation, known as an Advanced Persistent Threat (APT), is a common consequence of weak or nonexistent PIM controls.
By implementing robust PIM measures, organizations can continuously monitor privileged accounts, detect anomalies, and minimize the risks associated with privilege abuse and credential theft.
PIM vs. PAM vs. IAM
Identity and Access Management (IAM), Privileged Access Management (PAM), and Privileged Identity Management (PIM) work together to protect an organization’s data and systems. While they serve distinct functions, they complement each other in managing identities and securing access to critical resources.
Privileged Identity Management (PIM)
PIM helps organizations manage user privileges by controlling who can access critical resources. Enforcing stricter access controls prevents unauthorized entry and reduces the risk of data breaches.
Within Identity and Access Management (IAM), PIM plays a key role in authentication, overseeing credentials such as usernames, SSH keys, service accounts, passwords, and digital certificates.
Beyond security, PIM also enhances productivity by streamlining access to essential resources, ensuring users can efficiently perform their tasks without unnecessary delays.
Privileged Access Management (PAM) Solutions
Unlike PIM, which focuses on who has access, Privileged Access Management (PAM) focuses on how privileged accounts are used. Within IAM, PAM solutions monitor and audit privileged access to ensure it is not misused.
PAM adds critical layers of security by enforcing controls on administrator accounts. PAM monitors the ‘how’ aspect of privileged sessions, while PIM strengthens overall security by preventing abuse and unauthorized actions.
Identity and Access Management (IAM) Solutions
IAM governs who can access an organization’s resources, including applications, databases, networks, and systems. It allows administrators to assign roles to users or groups based on their responsibilities, ensuring structured access control.
While IAM encompasses both PIM and PAM, it also provides additional capabilities such as identity federation and identity lifecycle management (ILM) to streamline user authentication and account management.
Use Cases of Privileged Identity Management (PIM) in an Organization
The role of Privileged Identity Management varies across organizations, but its core objective remains the same - ensuring secure, controlled access to critical systems. Below are some critical ways organizations leverage PIM within their security framework:
- Enforce multi-factor authentication (MFA) for privileged roles – Require users to verify their identity before activating high-level permissions.
- Require approval for role activation – Ensure that privileged roles can only be activated with managerial approval.
- Just-in-time privileged access – Grant temporary administrative access to Microsoft Entra ID and Azure resources only when needed, reducing standing privileges.
- Time-bound permissions – Just-in-time access with predefined start and end dates to prevent unnecessarily prolonged access.
- Access reviews – Conduct periodic audits to verify if users still require privileged roles, preventing privilege creep.
- Justification tracking – Require users to provide a reason when activating privileged roles to enhance transparency and accountability.
- Real-time notifications – Get alerts when privileged roles are activated, allowing security teams to respond quickly to suspicious activity.
- Audit and compliance reporting – Maintain a detailed history of privileged access activities for internal governance and regulatory compliance.
- Critical role protection – Prevent the removal of the last active Global Administrator or Privileged Role Administrator to maintain continuous security oversight.
How Privileged Identity Management (PIM) Works
Privileged Identity Management (PIM) follows a structured process to ensure that only authorized users gain access to critical systems while minimizing security risks. Here’s how it works:
Step 1: Assign Roles
Administrators define roles with specific permissions, ensuring access is granted based on necessity. For example, a database administrator role may be created to provide elevated privileges for managing designated databases.
Step 2: Activate Users in Roles
Once roles are established, authorized identities can be assumed based on predefined policies. PIM enables organizations to determine who can activate privileged roles and automatically review assignments through approval workflows.
Step 3: Approve or Deny Access
When a user requests privileged access, PIM checks their eligibility against security policies. If the request meets all requirements, credentials are injected into the session. If not, access is denied, and the incident is logged for security tracking.
Step 4: Revoke or Extend Privileges
PIM enforces time-restricted access, automatically revoking privileges when the session expires or the user logs out—whichever comes first. If more time is needed, the user must submit a request for an extension, subject to approval.
Step 5: Monitor and Audit Activity
PIM continuously audits privileged sessions, offering detailed logs and session replays to detect suspicious behavior.
Risks of Unmanaged Privileged Identities
Overlooking privileged access jeopardizes your entire organization’s security posture. Here are some key risks of overlooking PIM.
1. Uncontrolled Access and Data Breaches
The risk of data breaches from unmanaged privileged access is significant. Privileged accounts are prime targets because they grant access to critical systems and sensitive data. If an attacker gains control of one, they can easily exfiltrate confidential information and carry out malicious activities undetected.
A good example is a breach in the mobile payment service Cash App. A former employee with privileged access infiltrated the company’s systems and remained undetected for nearly four months, stealing the personal data of 8.2 million customers. The company failed to revoke the employee’s access after termination, allowing them to retain control over sensitive information long after they left.
2. Inside Threats
While external attacks get most of the attention, insider threats are just as dangerous. Employees, contractors, or business partners with privileged access can misuse their credentials to steal data, sabotage systems, or leak confidential information.
Without proper controls, an insider can exploit their access without raising suspicion. Whether it’s intentional or due to negligence, privileged misuse can inflict just as much damage as an external breach.
3. Compliance Violations
Data privacy laws require strict safeguards for privileged identities, and non-compliance can have severe financial and reputational implications. Regulations like GDPR and HIPAA mandate strict access controls to protect sensitive information, ensuring that only authorized personnel can access critical data.
Without proper PIM measures, organizations risk non-compliance, resulting in heavy fines, legal penalties, and loss of customer trust.
4. Operational Disruptions and Financial Loss
When privileged accounts are compromised, critical operations can grind to a halt. Attackers can exploit high-level access to shut down vital systems, disrupt workflows, or even launch Distributed Denial of Service (DDoS) attacks, leading to prolonged downtime.
The financial impact is just as severe. Every minute of system downtime translates to lost productivity and missed revenue opportunities. The longer it takes to resolve the issue, the greater the financial damage.
The impact of such breaches goes beyond financial loss. A single security breach can erode years of trust. Customers, partners, and stakeholders expect their data to be secure. Once that trust is broken, it’s hard to rebuild.
Conclusion
Unmanaged privileged accounts pose a serious security risk, especially with the rise of remote work. Ensuring that all users are identifiable, continuously monitored, and granted only the necessary access is critical to maintaining a secure environment.
At CrucialLogics, we help organizations strengthen their security posture using the Microsoft technologies they already own. If you're looking for expert guidance on enforcing Privileged Identity Management with Microsoft Entra, speak with us today.
